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Dogecoin active addresses increased 400%, showing an increase in user participation.
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The impact of market sentiment on capital inflows is shown by the correlation between price spikes and capital inflows at the end of 2024.
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RSI approaching oversold conditions indicates a potential price reversal in DOGE.
Dogecoin’s (DOGE) user engagement is surging, with data on the chain revealing an increase of 400% in active addresses.
What’s driving the surge in active addresses?
According to Santiment data, as reported on by crypto analyst Ali Charts, active addresses have risen to nearly 395,000. That’s a 400% increase.
This could indicate an increase in the number of people who are using the network. It may also be a sign that development activity is increasing. Although the exact reason for the surge is not known, it shows that Dogecoin is gaining in popularity despite recent price fluctuations.
How has DOGE’s price performed?
Dogecoin has seen its price decline from late December 2024 until late February 2025. The number of daily active addresses has also decreased. This suggests that lower prices discouraged users earlier.
Related:Active Dogecoin wallets hit 9.5 million: A step towards mainstream use?
Since March 2025, a rise in the number of daily active addresses has also coincided with a slight increase in DOGE’s value. As of the time of publication, DOGE was trading at $0.1649. This is a drop from 1.55% over the last 24 hours to 18.39% in the last week.
What’s the connection between capital flows and price?
There is a strong correlation between the market sentiment and DOGE’s price. Capital inflows from May 2024 to this month, March 20,25, showed that the price of DOGE spiked during October-November, 2024 (green bars in the chart).
From December 2024 to March 2025, the decline in DOGE’s value corresponded with net capital outflows.
What the technical indicators say
Technical indicators such as Moving Average Convergence Digression (MACD) and RSI reflect the bearish sentiment surrounding the DOGE.
The RSI is at 37.62, which is close to oversold conditions. This could indicate a possible price reversal if the RSI recovers. A value below 30 usually indicates that DOGE is oversold and could be headed upwards.
Related:Dogecoin – Stock RSI Flashes a Buy, Can DOGE Break the $0.24 Resistance?
The MACD indicator confirmed a divergence in the direction of the bears on the daily chart, with the MACD line below the signal line. The MACD histogram also turned bullish and formed green bars.
